Invoice & Billing Procedures

USAC uses data submitted on the FCC Form 499-Q (Quarterly Telecommunications Reporting Worksheet) by telecommunications companies to determine their monthly universal service fund (USF) contribution obligation. Obligations are assessed based on a company's projected collected end-user interstate and international revenues. The quarterly projected collected revenue on the FCC Form 499-Q is entered into an FCC-determined contribution calculation using FCC-established contribution and circularity factors to arrive at the monthly obligation. The calculation is:

• Projected collected interstate + projected collected international = revenue base
• Revenue base x FCC contribution factor = unadjusted contribution
• Unadjusted contribution x FCC circularity factor = circularity deduction
• Unadjusted contribution - circularity deduction = total quarterly contributions
• Total quarterly contributions ÷ three (3) = monthly obligation

In addition to monthly charges associated with the current quarter's revenue calculations, USAC invoices may also include adjustments or credits for prior period revisions and true ups. USAC-accepted revisions to revenue periods that have already been used for billing result in a recalculation of the initial obligation. For FCC Form 499-Q filings, this recalculation uses the same contribution and circularity factors in effect at the time the original filing was due, and USAC will apply credits or adjustments to invoices to compensate for initial over- or under-reporting. True-ups for reported annual revenues are calculated using an average of the factors for the year. Credits and adjustments due to revisions will be issued in equal installments each month of the applicable quarter, except for companies that are de minimis filers. If your company is a de minimis filer or you just want to learn more about how your credits and adjustments will be applied to your account, please contact USAC Customer Operations at (888) 641-8722.

USAC invoices may also reflect netted or withheld disbursements, late payment fees and penalties, late filing fees, or charges related to the Debt Collection Improvement Act of 1996 (DCIA) or bankruptcy-related charges.

USAC invoices are generated monthly with a due date of the 15th. If the 15th is a weekend or holiday, then the payment due date is moved to the prior business day.